Brussels launches consultation public broadcasting funding

The European Commission intends to further clarify the rules laying down how public funds are given and spent by EU public broadcasters in view of the lack of transparency usually surrounding this type of state aid.

Launching a short consultation process for member states and stakeholders before moving on to a make a formal proposal, the Commission said that among the key issues to be tackled are the public service remit in the new media environment and control of over-compensation. It intends to come forward with formal proposals later on this year.

The issue of public funding for state-run media, including radio and television, is always shrouded in controversy particularly following complaints raised by independent broadcasters accusing state stations of using public funds for commercial purposes. Over the past few years, the Commission has made more than 20 decisions to clarify the application of state aid rules to the broadcasting sector, clearly indicating that the rules need to be tightened up.

Public Broadcasting Services (PBS) in Malta will also be affected by the new proposals as it receives €1.15 million (Lm500,000) in state subsidies annually for the production of television and radio programmes that are of a public service obligation and, thus, not commercially viable. However, the system has also been criticised in Malta for lack of transparency in the allotment of public funds to individual programmes and companies.

According to the European Commission, the launch of the consultation process marks the beginning of the review of the broadcasting communication and will build on the fundamental principles applicable to the financing of public service broadcasting. These principles include the recognition of member states' discretion of defining public service broadcasting and the Commission's task to preserve fair competition. This implies, in particular, the need for a clearly defined public service mission as well as the limitation of state aid to what is necessary for the fulfilment of this mission, excluding over-compensation and possible cross subsidies into commercial activities.

Member states are obliged to follow EU guidelines drawn up in 2001 on the granting of state aid to public broadcasters.

The consultation process closes on March 10.